Visual Guide to ETFs

Booking and ETF Platform Execution Issues

Booking issues sometimes arise because of the global reach of ETFs and because of administrative systems that may not be equipped to handle lags in execution price. Some clients are excluded from accessing the liquidity of the underlying and trading on an agency basis to reduce impact because of timing differences. For example, in most India funds, the traders and market makers need to know on T-1 (the day before the actual trade date) that a client wants to trade locally. This is strictly because of timing logistics. The basket orders need to be sent out by the Indian local close, which is some time before trading in New York begins. In some instances, the issuer needs to be notified the prior day as ...